MTN Nigeria announced it will launch a mobile money services throughout the country in August 2011, with the aim of bringing its more than 40 million users to the new platform.
According to MTN, mobile money will harness and document the identities, resources and financial transactions of hoarders and unbanked Nigerians and bring them into the formal economy.
The goal of mobile money is to help create a cashless society and reduce the cost and dangers associated with traditional transactions in the country.
Most Nigerian telecom analysts are positive about the latest mobile money developments in the country. Currently less than one in five Nigerians have bank accounts and the country’s 24 commercial banks have a network of less than 4 000 branches nationwide.
Currently 90 million of Nigeria’s 140 million citizens have active mobile phones. “Mobile money is a facility that enables people to use their cell phones and other hand-held devices as electronic purses from which to effect financial transactions, including receiving and making payments,” MTN Nigeria stated.
Currently, Kenya has the most effective mobile money service in Africa.